J.C. Penney may be preparing to file for bankruptcy protection as early as next week, according to Reuters and other news outlets. J.C. Penney would be the first major retailer in the U.S. to buckle under the pressure of the coronavirus' effect on the American economy.Filing for bankruptcy would close a chapter of slow decline for the department store chain, which has been in business since 1902. The business has been shackled with almost $4 billion in debt as competition from online retail ate up sales. Now, with the coronavirus pandemic shuttering businesses' doors nationwide, that $4 billion figure looks even more daunting with Americans staying indoors instead of shopping.Video: Most states easing restrictionsJ.C. Penney passed a deadline for a $17 million debt payment Thursday and only has five days to catch up on it before it defaults. The 30-day grace period for a $12 million payment J.C. Penney skipped mid-April closes next Friday.J.C. Penney has not come to a final decision on dealing with its financial situation. It is considering other options including negotiations with creditors out of court or finding new financing, reported Reuters. Media outlets reporting the news used anonymous sources.

J.C. Penney may be preparing to file for bankruptcy protection as early as next week, according to Reuters and other news outlets.

J.C. Penney would be the first major retailer in the U.S. to buckle under the pressure of the coronavirus' effect on the American economy.

Advertisement

Filing for bankruptcy would close a chapter of slow decline for the department store chain, which has been in business since 1902. The business has been shackled with almost $4 billion in debt as competition from online retail ate up sales. Now, with the coronavirus pandemic shuttering businesses' doors nationwide, that $4 billion figure looks even more daunting with Americans staying indoors instead of shopping.

Video: Most states easing restrictions

J.C. Penney passed a deadline for a $17 million debt payment Thursday and only has five days to catch up on it before it defaults. The 30-day grace period for a $12 million payment J.C. Penney skipped mid-April closes next Friday.

J.C. Penney has not come to a final decision on dealing with its financial situation. It is considering other options including negotiations with creditors out of court or finding new financing, reported Reuters. Media outlets reporting the news used anonymous sources.